It’s relatively easy to be like Warren Buffett from one point of view: You can invest in a mix of stocks that exactly mirrors the holdings of his Berkshire Hathaway (NYSE:BRK.A, BRK.B) firm by simply investing in its stock. That won’t put you anywhere near his net worth of $112 billion. But it will at least put you on track for steady returns backed by the strength of American business.
And that’s the point of Berkshire Hathaway. But where should investors place their capital within that portfolio of stocks under Berkshire Hathaway? After all, there are roughly 50 positions within Berkshire Hathaway stock. Which positions within its holdings represent the potential for exceptional growth?
Occidental Petroleum (OXY)
Occidental Petroleum’s (NYSE:OXY) first-quarter profits reached a record $4.7 billion. Those record profits were the result of a 65% increase in realized oil prices and came even as the company saw production decrease.
Buffett’s Berkshire Hathaway firm initiated its position in OXY stock in the first quarter and increased that holding from 136 million shares to 220 million shares as of April 30.
As long as the Russian invasion of Ukraine continues, OXY stock will remain particularly strong. The company relies on its holdings in the Permian Basin of Texas and New Mexico to produce the majority of its oil. And 80% of the oil the company produces comes from the U.S. overall.
With prices at the pump rising drastically over the last month and the last week, it would seem that Occidental Petroleum will see another strong quarter. Its strong position domestically, coupled with rising prices, nearly ensures that will happen.
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